‘Exporters unhappy with VAT’
‘Exporters unhappy with VAT’
The state-level VAT regime, aimed at reducing variation and complications in tax rates, has left exporters discontented as their transaction and input costs have increased, according to an Assocham survey.
“Exporters reported a increase in transaction costs of around 10 per cent in the VAT regime. Their paper work has increased and made some inputs for production expensive,” said the study, submitted to the Union Commerce Ministry.
According to the study, if VAT was implemented in states and Central Sales Tax (CST) at the Central level, there would be disintegration, presence of territorial mentality and existence of a generally unhealthy business environment.
“In the survey, exporters expressed discontentment about VAT implementation and its transparency. There was a lot of stress on the need to dilute Central Sales Tax (CST) and to bring about a common market with uniform Vat,” a senior Assocham official told PTI here.
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